Networking for Nerds: Do You Know the Difference between IP Peering vs. IP Transit for Enterprise Internet Interconnection?
IP peering is a mutual exchange of data between two ISPs, and the amount of data exchanged is typically close to equal. The respective ISPs do not charge for this arrangement as both parties benefit equally — this is known as settlement-free, and it simply means that neither ISP will pay the other under an agreement. IP transit is when one entity pays another for the right to transit its upstream network. In this arrangement, one entity is
As one of the world’s largest IP peering platforms, Equinix has witnessed more IP traffic growth in the past 18 months than the previous four years combined. In fact, we estimate the total public and private IP peering traffic in our global Equinix International Business Exchange™ (IBX®) data centers is growing by 15 terabytes per second (Tbps), per quarter, outpacing the overall Internet traffic growth rate.